By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 21 (MarketsFarm) – Intercontinental Exchange canola futures closed lower on Thursday, getting caught up in a general selloff in the commodities.
Pressure on the Canadian oilseed also came from sharp losses in the Chicago soy complex, along with more modest declines in Europe rapeseed and Malaysian palm oil.
Saskatchewan reported its harvest was 82 per cent complete provincewide, with canola at 65 per cent finished.
The Canadian dollar was lower by mid-afternoon Thursday with the loonie at 74.27 U.S. cents, compared to Wednesday’s close of 74.50.
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There were 39,629 contracts traded on Thursday, which compares with Wednesday when 38,412 contracts changed hands. Spreading accounted for 27,340 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 725.30 dn 10.80 Jan 735.30 dn 9.80 Mar 742.30 dn 9.40 May 747.90 dn 9.60
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday as the general selloff in the commodities resumed.
The United States Department of Agriculture issued its export sales report and for the week ended Sept. 14, old crop soybeans had net sales of 434,100 tonnes, which came in below trade guesses. Soymeal export sales compromised of 12,700 tonnes of old crop and 439,100 tonnes of new crop, while soyoil sales were 700 tonnes, with the three within market expectations.
The International Grain Commission issued its monthly supply and demand report and nudged up total world grain production to nearly 2.295 billion tonnes from last month’s 2.294 billion. Global ending stocks increased from 583.6 million tonnes in August to 587.7 million.
The IGC placed world soybean production at 396 million tonnes, down two million from its August report. Ending stocks slip from 63.9 million tonnes to now 61.6 million.
CORN futures were lower on Thursday, getting spillover from soybeans.
The USDA said there’s a private sale of 137,160 tonnes of corn to Mexico with about 89 per cent of it to be delivered in 2023/24 and the remainder in 2024/25.
The department counted 2023/24 corn export sales of 566,900 tonnes, which was at the low end of trade expectations.
The IGC’s forecast on 2023/24 corn production inched up to 1.222 billion. Ending stocks increased one million tonnes to 118.8 million.
APK-Inform pegged Ukrainian corn production for 2023/24 at 25.6 million tonnes, with projected exports of 19.0 million tonnes.
South Korea acquired 204,000 tonnes of corn, Taiwan bought 65,000 and Algeria purchased 60,000.
WHEAT futures were weaker on Thursday in sympathy with soybeans.
Export sales of U.S. wheat tallied 307,700 tonnes of old crop plus 14,000 tonnes of new crop, while both met trade predictions.
The IGC estimated global wheat output at 783.5 million tonnes in its September report, slightly lower from last month’s 784.1 million. However, world wheat ending stocks climb from August’s 260.9 million tonnes to now 262.6 million.
APK-Inform upped its call on total Ukrainian grain production by 2.1 per cent at 54.2 million tonnes. Of what wheat is to come to 21.5 million tonnes along with 5.7 million of barley. Total grain exports were projected to be 34.2 million tonnes, with 12.5 million earmarked for wheat. Meanwhile, Ukraine and Poland reportedly worked out an agreement on grain exports.
A Russian missile barrage struck at Ukraine’s power grid, killing 18 people. Ukraine launched an attack on a Russian air base, with reports citing “serious damage” being inflicted.
Australian wheat production has been cut below the official projection of 25.4 million tonnes due to increasingly dry conditions. Estimates as low as 22 million tonnes were said to be likely should that dryness continue.
Kazakhstan said its grain harvest this year was 6.6 million tonnes as of Sept. 19, versus the 14.2 million a year ago.
Egypt bought 120,000 tonnes and Algeria reportedly acquired 600,000 to 800,000 tonnes of milling wheat plus 120,000 tonnes of feed barley.
